Look to the Future
Let’s look forward…
2022 was a complete rollercoaster, with many changes for the payroll industry to digest and action. As we head into 2023, here are some of the things we’re already aware of, for payroll professionals to keep on their radar.
Spring budget
This is scheduled for 15 March 2023, and the budget will be accompanied by a forecast from the Office for Budget Responsibility.
New tax year
We prepare for this on an annual basis, so payroll professionals will already be aware of their responsibilities when the new tax year arrives on 6 April 2023.
An extra bank holiday
2023 will see an additional bank holiday, on 8 May 2023, in relation to the coronation of King Charles III. Employers need to be mindful of whether their staff are automatically entitled to this additional day off, but this will be dependent on the wording in their contract of employment.
Payroll teams will also need to be aware of the potential impact on Bacs deadlines to ensure staff are paid on time.
Flexible working requests a day one right
When Parliamentary time allows, secondary legislation will be passed to make the right to request flexible working applicable from an individual’s first day of employment.
Potential changes to data reported via real time information (RTI)
A HMRC consultation proposed amendments to the data it collects through RTI, including more information regarding:
· employee occupations
· employment locations
· specific contracted hours that employees work.
We’re currently waiting for the consultation response to be published, but the impacts if new RTI reporting requirements are introduced could be substantial.
Standard payroll milestones
And of course, there’s the standard suite of dates payroll professionals have etched in their memories:
1 April – National living wage and national minimum wage legislation becomes effective. The new rates will apply to the first pay reference period that begins on or after 1 April 2023.
6 April – Start of new tax year. New tax/National Insurance contributions bands and thresholds effective.
19 April – Deadline for final RTI submission of the year.
31 May – Issue P60 to employees.
6 July – Return form P11D to HMRC and the deadline for issuing of form P11D to employees.
19 July – Class 1A payment due if paying by cheque.
22 July – Class 1A payment due if paying electronically (this is a weekend date).
19 October – Class 1B payment due pay as you earn settlement agreements (PSAs) if paying by cheque.
22 October – Class 1B payment due (PSAs) if paying electronically (this is a weekend date).
